The HR impact of the mini-budget reversal
18 October 2022
On 17 October 2022, Jeremy Hunt, the new Chancellor of the Exchequer announced an almost total reversal of the various tax related announcements made at the mini-budget which was released on 23 September 2022. What was the HR impact of the mini-budget reversal?
There are quite a few matters from an HR/employment aspect which operators need to be aware of. In simplistic terms, the main initiative to remain is the reversal of the recent national insurance rate increase with effect from next month. Therefore, in summary:
- There is no change to the rate of income tax – the 45% additional rate of income tax for the highest earners will remain in place and there will be no reduction in the basic rate of income tax which will remain at 20% indefinitely.
- Dividend tax rates will remain the same.
- No changes will be made to the IR35 regime and which will continue to operate as it does currently.
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